Yemen Market and Trade Bulletin May 2025 - Issued on 24 June 2025

KEY HIGHLIGHTS

CONTEXT: Yemen's food security is under significant pressure from several converging threats. In Government of Yemen (GoY) areas, the currency continues to collapse, leading to soaring food and fuel prices. Meanwhile, Sana'a Based Authority (SBA) areas face stringent market controls, although a recent FTO designation on the Central Bank in Sana'a is seriously impacting the SBA, exacerbating financial constraints across the board. The ongoing crisis has also triggered a widespread wage collapse and introduced seasonal challenges, further compounded by a ban on wheat flour imports. The recent escalation of the Middle East Crisis presents a significant risk of further fuel and food price hikes. While milling capacity and port infrastructure are generally sufficient, potential fuel shortages in SBA-controlled areas could disrupt milling operations and drive wheat flour prices higher, even with existing controls.

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